Proposal to raise £1.040 million before expenses.
Tower Resources Plc ("Tower" or the "Company"), the AIM listed oil and gas exploration and production company, today announces that it is proposing to raise £1.040 million before expenses by a placing of 52,000,000 new ordinary shares (the "Placing Shares") at 2p per ordinary share (the "Placing Price"), to be issued in the following two tranches:
(a) the first tranche of 45,000,000 Placing Shares (the "First Tranche") and
(b) the second tranche of 7,000,000 Placing Shares (the "Second Tranche").
The Placing Shares are being placed with Agile Energy Limited, a privately held energy investment company, chaired by Jeremy Asher, formerly CEO of PA Consulting Group, a leading management, systems and technology consulting firm. Jeremy Asher will also be appointed as a Director of the Company conditional on the admission of the First Tranche to trading on AIM. Information on Jeremy Asher will be announced on his appointment as Director as required under rule 17 and schedule 2 paragraph (g) of the AIM Rules.
The Company intends to apply the proceeds of the placing to the development of its existing oil and gas assets, the expansion of its oil and gas portfolio and for general working capital purposes.
The Placing Price equates to the closing mid market price of 2p on AIM as at 20 December 2006, the date prior to the publication of this announcement. The Placing Shares will, when issued and fully paid, rank pari passu in all respects with the existing issued ordinary shares of the Company.
Application will be made for the First Tranche to be admitted to trading on AIM and trading is expected to commence in the First Tranche on 5 February 2007.
Application for the Second Tranche is conditional on the passing of resolution(s) granting the Company’s directors authority to allot the Second Tranche pursuant to Sections 80 and 95 of the Companies Act 1985 and any other resolutions required to permit the allotment of the Second Tranche to be allotted and issued by the Company (the "Second Tranche Condition"). Following satisfaction of the Second Tranche Condition, the subscription funds for the Second Tranche are due no later than 30 April 2007 and it is expected that the Second Tranche will be admitted to trading on AIM 3 business days after payment, which (assuming payment on 30 April 2007) is expected to occur on 4 May 2007.